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Dow rises in excess of 200 points, hits record very high as Wall Street kicks off last week of 2020

 Stocks traded higher on Monday in advance of the very last trading week of 2020 and as President Donald Trump unexpectedly signed an economic help bill.

The Dow Jones Industrial Average jumped 207 points, or maybe 0.7 %. The S&P 500 climbed 0.7 %, and the Nasdaq Composite rose 0.6 %. All 3 major indexes hit record highs at the open.

President Donald Trump signed a $900 billion Covid 19 relief bill into law, averting a government shutdown and extending unemployment benefits to millions of Americans. The signing came many days after Trump suggested he would veto the legislation, demanding $2,000 immediate payments to Americans, instead of $600.

All the bluster neither substantially changed to perspective for stocks, as markets still expected (and ultimately received) stimulus of a minimum of $900 billion to pass, wrote Tom Essaye, founding father of The Sevens Report.

The 5 pillars of the rally (Federal stimulus, FOMC stimulus, vaccine rollout, divided government and no double dip recession) re main largely in place, and until that changes, the moderate and longer-term perspective for stocks will be good, Essaye added.

Apple led the Dow higher, rising 2.5 %. Tech and supplies were the best performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.

Wall Street is coming off a peaceful holiday week wherein the main averages were flat. The S&P 500 fell 0.2 % last week as several investors took the chips off into the year-end. The 30 stock Dow eked out a 0.1 % gain for the very same period.

Profit-taking might ramp up in the very last week of the year, which has up to this point seen surprisingly good returns. The S&P 500 has gained 15.4 % year to date, even though the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this year as investors favored high-growth technology labels during the continued Covid-19 pandemic.

Dr. Anthony Fauci warned on Sunday that the country could see a surge in new Covid-19 infections following Christmas and New Year’s celebrations. 2 vaccines by Pfizer and Moderna have begun the distribution process this month. And so much more than one million folks in the U.S. are vaccinated.

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